Overview#
Morgan Stanley has adjusted its price target for T. Rowe Price Group shares, lowering it from $107 to $105. The stock is currently trading at $99.07, with a market capitalization of $21.5 billion. According to analysis, the company may be undervalued based on its fair value assessment.
Assets Under Management Decline#
The revision in price target comes after T. Rowe Price disclosed its assets under management (AUM) for March 2026. The average total AUM for the first quarter of 2026 was reported at $1.77 trillion, which is 0.7% lower than Morgan Stanley's previous estimate. Additionally, the end-of-period total AUM was 1.3% below expectations.
Net Flows and Earnings Estimates#
For the first quarter of 2026, T. Rowe Price experienced long-term net outflows of $13.7 billion, reflecting a 3.1% annualized decline. This is an improvement compared to an earlier estimate of negative $15.2 billion or a 3.5% annualized decay. Morgan Stanley has also decreased its operating expense estimate for the first quarter of 2026 by 2% but kept its 2026 earnings per share (EPS) estimate unchanged while increasing the 2027 estimate by 1%.
Leadership Changes and Dividend Increase#
In recent developments, T. Rowe Price reported total assets under management of $1.71 trillion as of March 31, 2026, with net outflows of $3.2 billion in March. The company has appointed Bill Cashel as Head of Alternatives for U.S. Wealth, focusing on alternative and private market investments. Furthermore, T. Rowe Price has raised its quarterly dividend by 2.36%, now set at $1.30 per share, benefiting shareholders of record as of March 16, 2026. Additionally, CEO Robert W. Sharps has joined the board of directors at Longeviti Neuro Solutions, highlighting ongoing strategic initiatives.